Purpose - In the joint development of new products, buyers and suppliers exchange information to solve various problems. Uncertainty and ambiguity are typical examples. Uncertainty refers to the lack of information to solve the problem, and equivocality refers to the case where the information is interpreted in multiple processes in the process of providing the information. These uncertainty and equivocality cause new products to be delayed in their development and adversely affect quality. However, unfortunately, there is a lack of researches on how the uncertainty and equivocality of such concepts control the results of new product joint development. But, smooth communication and effective exchange of information is not emphasized only in the general organization. The importance of the new product joint development projects to achieve the two organizations' common goals becomes even greater. The purposes of this study are to analyse the effect of supplier's strategy on the NPD performance and moderating effect of uncertainty and equivocality. Research design, data, and methodology - In order to make a contribution to the lack of academic researches in Korea, this study collects data through questionnaires based on organizational information processing theory and previous studies, and conducts empirical analysis. Results - As a result, the product modularization strategy and the strategic supply chain relationship positively influenced the new product development performance - return on investment and ease of manufacturing. And the interaction effect of uncertainty and equivocality with supplier's strategy - product modularity strategy and strategic supply chain management relationship - reduces or negates the influence of product modularization strategy on new product development performance. Conclusions - This implies that it is important to control uncertainty and equivocality in order for the supplier strategy to have a positive effect on new product development performance. It also emphasizes the necessity of sharing information appropriately for companies that do not want to share the information as possible due to their fear of loss of competitive advantage in the joint development of new products. Because this kind of negative policy might let uncertainty and equivocality be happen in new product joint development process.
Purpose - This study aims to clarify through which process asset specificity and supplier development project (SDP) affect performance. Cooperation, partnership, the level of information exchange, and the importance of information sharing are considered significant variables as mediators related to the process. Finally, the performance formation model of the supply chain through asset specificity and supplier development project would be suggested as being a result of this study. Research design, data, and methodology - Data collection was as follows: questionnaires were distributed to 250 companies that have business ties with H Company. The empirical study to test our hypothesis was based on statistical analysis (using SPSS 19.0 and AMOS 19.0). The hypothesis of this paper is that the asset specificity and supplier development project variables have positive effects on the following variables: mediators such as cooperation and partnership (reliability and dependence); and the cooperation and partnership variables have a positive effect on the following variables: level of information sharing, the importance of information sharing, and level of information sharing; the importance of information sharing has a positive effect on supply chain performance. We tested our hypothesized model utilizing path analysis with latent variables. Results - First, it was found that asset specificity has significant positive effects on cooperation (H1), reliability (H2), and dependability (H3). Second, it was proved that the level of comprehension on the purpose of SDP has positive effects significantly on cooperation (H4), reliability (H5), and dependability (H6). Third, the hypotheses related to cooperation were all significantly accepted. The relationships of cooperation with the level (H7) and importance (H8) of information sharing were significant. Fourth, the hypotheses related to reliability were all significantly accepted. The relationships of reliability with the level (H9) and importance (H10) of information sharing were significant. In terms of dependability, however, the hypotheses were partially accepted. The effect of dependability was significant on the importance of information sharing (H12), but insignificant on the level of information sharing (H11). Finally, the causal relationships from the level of information sharing to SCM performance (H13) and from the importance of information sharing to SCM performance (H14) were both significantly accepted. Conclusion - First, with rapid changes in the business environment, enterprises should acquire the right information to properly implement SCM. For successful SCM, firms should understand the supplier development project. Second, asset specificity and the level of comprehension on SDP have significant effects both on cooperation and partnership (reliability and dependability). Third, mediators such as cooperation, reliability, and dependability significantly affect the level and importance of information sharing. Fourth, the level and importance of information sharing have significant impacts on SCM performance. This paper makes a meaningful contribution to further the understanding of how SDP affects SCM performance. Finally, successful SCM performance is achieved by information sharing through a collaborative environment and partnership (confidence & dependence) rather than by investing only in setting up an information system.
Journal of the Korean Operations Research and Management Science Society
/
v.40
no.3
/
pp.73-95
/
2015
Firms have reexamined and restructured their supply chain based on a long-term and partnership perspective as a firm's competitive advantage increasingly relies on its supply chain capability. A number of scholar works has provided evidence to support the positive effects of supply chain collaboration; however, the relationship between collaboration and performance is still inconclusive. This study refuses to have blinded faith on supply chain collaboration, but rather this paper suggests that the contribution of collaboration to supply chain performance improvement can be limited and vary along the contextual characteristics of a buyer-supplier relationship. Moreover, we argue that the relationship between supply chain collaboration and performance can be curvilinear. This paper provides and test hypotheses regarding the relationship between supply chain collaboration and performance. By using data of the Manufacturing Panel Survey (MPS), this study empirically validates the hypotheses. Overall, the results of the study support our hypotheses about a limited contribution of supply chain collaboration to manufacturing performance, which is opposite to a conventional expectation. Particularly, the effects of supply chain collaboration differ depending on the dimensions of performance such as customer satisfaction, quality, cost, delivery, and flexibility as well as the dependency in the buyer-supplier relationship. Moreover, the results of the study indicate that supply chain collaboration and performance may have curvilinear relationships in a certain context. Through a comprehensive model and empirical evidence, this study presents a better understanding of supply chain collaboration and provokes an open discussion about the effects of collaboration. This study also provides insightful implications for managers of buyers as well as suppliers who wish to foster stronger supply chain performance via a deep buyer-supplier relationship and collaboration.
This paper provides an empirical analysis of the effects of trust determinants on firm performance in the buyer-supplier relationships by considering warehousing firms in Busan, South Korea. We employed AVAS transformation regressions to address the limitations of linear regressions and found nonlinear relationships between firm performance and trust determinants. Specifically, "longterm and repeated interactions," "geographical proximity," and "cultures and norms of firms and formal institutions" had positive linear relationships with firm performance, and "information sharing and reciprocity" induced an increasing pattern in firm performance. Finally, "interdependence and asset specificity" and "uncertainty removal" led to a decreasing pattern in firm performance. These results suggest that the relationship between trust and firm performance is contingent on the trust determinants that are important source of trust in buyer-supplier relationships and the influence of trust determinants on firm performance varied according to their levels.
As environmental protection is becoming more and more important, green production has become a key issue for almost every manufacturer and will determine a manufacturer can be sustainable in the long term. Therefore a performance evaluation system for green suppliers is necessary to determine the suitability of suppliers to cooperate with the company. While the works on the evaluation and/or selection of suppliers are abundant, those that concern environmental issues are rather limited. The objective of this study is to construct a combined model based on fuzzy analytic hierarchy process (FAHP) and balanced scorecard (ESC) for evaluating green suppliers in the manufacturing industry. The ESC concept is applied to define the hierarchy with four major perspectives (i.e. financial, customer, internal business process, and learning and growth), and performance indicators are selected for each perspective. FAHP is then proposed in order to tolerate vagueness and ambiguity of information. Finally, FAHP is finally constructed to facilitate the solving process. With the proposed model, manufacturers can have a better understanding of the capabilities that a green supplier must possess and can evaluate and select the most suitable green supplier for cooperation.
This study is about how does collaboration activities of large company's Supplier Relationship(SR) effect on manufacturing capability and performance of a SMEs. In this research, there are many ways to analyze data. The methods used in the study are hypothesis testing and empirical testing based on SPSS 21.0 and AMOS21.0, factorial analysis for validity and reliability of questionnaire item, construct validity and variance extracted as a research model, and subcontract-tiers as a moderating variable. As a result, the effect of the collaboration activities of large business did not have the significant effect on supplier's manufacturing capability. It showed different result by subcontract-tiers In first-tier cooperative, collaboration activities of large business had significant effect on manufacturing capability, but it did not have the significant effect on performance. In second/third-tier cooperative, manufacturing capability and performance are significantly affected by manufacturing practices. In conclusion, this study will suggest the direction how to achieve an accompanied growth between large enterprises and SMEs.
The goal of supply chain integration is to improve the effectiveness and efficiency of supply chain for creating customer values. Supply chain integration can be classified into IT integration and structural integration. Also, structural integration can be collapsed into three dimensions: internal, supplier and customer integration. In this study, we investigate the relevance between customer value and supply chain integration. To explore the current study, we collected from 73 Korean firms. The results are as follows: First, customer value has a positively significant effect on IT integration. Second, customer value influences on customer integration but does not has an effect on internal and supplier integration. Third, IT integration improve internal, supplier and customer integration. Finally, each of structural integration positively influences firm performance. These results indicated that declaration of customer value is important factor in supply chain integration.
In today's changing environment where the product life-cycle is becoming shorter, enterprises are forced to introduce new products as rapidly as possible and to score a success in a market. It is important to manage suppliers who supply parts of the new products to satisfy variable demands. We suggest performance measures of flexibility for suppliers in new products environments. We analyzed the measures from literatures, SCOR (Supply Chain Operations Reference) model and several scorecards. A simulation study was made with the measures in order to understand adaptability of a supply chain. It could help a manufacturer make a decision of purchasing and find a bottleneck supplier.
Cooperating with a supplier with professional skills is necessary to achieve performance in the development of the innovative products. It is also important to improve development competence and share knowledge. This study empirically analyzed the effect of participant's Job Competence and Leadership Competence on Knowledge Sharing, and the effect of Purchaser Interdependence on Supplier Absorption Capacity. The purpose of the study is to confirm that Knowledge Sharing between Development Participant and Supplier contributes to Performance and to demonstrate the need for a cooperative relationship with the Supplier. A survey was conducted on the product development participants to confirm the relationship between the factors using a Structural Equation Model. As a result of the hypothesis test, the better the Individual Competence of the development participants, the better the Knowledge Sharing Activity, and then Knowledge Sharing and Interdependence are the main factor in the Absorption Capacity of the Supplier. The results of this study can contribute to improving the Supplier Absorption Capacity in the product development projects in which high technology is converged. In the future, we will study the effects of the project support activities of related departments for Performance.
Purpose: The ability of a firm to acquire resources through marketing networks is crucial for its competitiveness. Nonetheless, the influence of these networks on the performance of a firm's innovation is still uncertain, particularly in the face of environmental uncertainty. This research investigates the impact of marketing networks, specifically network embeddedness and structural holes, on the performance of innovation in situations characterized by environmental uncertainty. Research design, data and methodology: The empirical examination was carried out within the framework of internal network entities, specifically the manufacturer-supplier-sub supplier relationships, involving the primary suppliers of a Korean engineering firm. Construct measures utilized in this study were derived from existing measures and prior research. A questionnaire survey was conducted with a major first-tier supplier of a Korean engineering firm. Proposed hypotheses were tested using structural equation modeling. Results: The survey findings suggest that only network embeddedness has an impact on the perception of major first-tier suppliers regarding the buyer's innovation performance. Conclusions: To strengthen the empirical evidence regarding the effects of marketing networks on innovation performance, future research should take into account cultural factors such as collectivism, which is indicative of the distinctive business-to-business marketing relationships observed in the Korean context.
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